1-Day Analysis:
Big Picture: Since testing the channel lows, Ethereum has posted a recovery by over 6.5 percent. Furthermore, it was stated in the last report that price was expected to make an attempt again at the key resistance levels. Currently, Ethereum is testing that zone and encountering some difficulties; bulls will need to increase their aggression to overcome these difficulties and push for a further corrective phase.
On the Upside Bulls are attempting to push Ethereum higher as they challenge the resistance levels of 1620 to 1630. They were able to squeeze slightly higher than this level, but the price was unable to hold that momentum, resulting in some intraday profit-taking. A clear break over 1630 is necessary for the upside to expand further into the 1660 level, followed by a squeeze into the 1680 to 1700 levels, with room for much more potential.
On the Downside this ongoing recovery has re-established a handful of supports along the way. Ethereum now has early supports ranging from 1605 to 1595, with stronger supports ranging from 1585 to 1575. These will be the session’s primary supports, which will likely hold against selling scenarios. However, if bulls continue to encounter rejections from the EMA-200 level, momentum may once again begin to get weaker, resulting in some significant selling, exposing Ethereum back towards 1555 and potentially 1520 levels.
